When Common Sense Beats Repricing Software
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Nottingham United Kingdom
Bigian13
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When Common Sense Beats Repricing Software
27 Nov 2017
Okay, so Black Friday has been and gone for another year.

Amazon were pushing it heavily as usual, and no doubt many Amazon sellers were using repricing software to take advantage, but did they use common sense as well to really take advantage?

I spent Black Friday with one of my clients, mainly to see if the alterations we had made to some of their processes were working. While I was there, I noticed that the packers were despatching a large number of one particular item. Intrigued, I checked the item on Amazon and there were 5 sellers all within £1 of each other. The next seller was around £6 more expensive. After checking the available quantities from those sellers I advised 'Da Boss' to raise his minimum price on his repricing software straight away.

Unfortunately this resulted in no sales of this item for the next three hours, but then around 150 sales in the following four hours (which is when stock ran out). Taking into account VAT and Amazon fees this resulted in an increase in profit of over £600. Not bad for about 5 minutes extra work on one product line that normally retails for around £14.

Now this company would have been happy to sell at their minimum price, but that extra profit showed them that by using some common sense and keeping their eyes open for fast selling products, they can increase their profit margin.

While repricing software has proved invaluable to many sellers, the use of common sense and an inquisitive approach can reap excellent rewards as well.

[Last edited: 27 Nov 2017]
E-commerce , love it or hate it, that's why we are here
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Andy
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Re: When Common Sense Beats Repricing Software
27 Nov 2017
Thanks Ian, nice story

So you saw that your client was fighting it out with 5 other sellers around the same price. By checking how much stock those other 5 had (I assume by attempting to add 999 of each of their stock to your Amazon basket) you calculated they would run out of stock during the next few hours. So it made sense to raise the price and let the competitors run out of stock while customer demand was still high, so your client could scoop up the remaining demand at a better price.

I wonder if there's any repricing software clever enough to automate all that...
Andy Geldman, Web Retailer
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Derry United Kingdom
repricerexpress
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Re: When Common Sense Beats Repricing Software
28 Nov 2017
@Andy

The reason Amazon repricers don't provide competitor stock info currently is that this is not provided through Amazon's API.

Some repricing software will give you competitor information such as shipping time, feedback rating and feedback count which should be considered in your pricing strategy.

For a step-by-step guide to the 999 trick, check out:

www.repricerexpress.com/find-o...ch-stock-your-competition-has/
Win the Buy Box more often with RepricerExpress Amazon Repricing Software.
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Israel Israel
Valigara
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Re: When Common Sense Beats Repricing Software
4 Dec 2017
@Bigian13

That's a nice story indeed, and your conclusion on common sense is most important!

To what you and @Andy wrote, I just wanted to add a small remark: above the repricing, the selling technology - there is always the product first.

For example, from our experience in jewelry and diamonds eCommerce, repricing tools do apply here at all. Simply because there is no standard item. Almost all jewelry design is unique and not comparable. So there is no such thing similar to beating the buy box for iPhone 8 64GB... In addition, the purchases are emotional (if you expect she will say "Yes", you need the ring by tomorrow ).

It doesn't mean that right pricing is marginal for jewelry, but the art of right offering is much more important than pricing. So I am quite sure that common sense is still the main pricing tool for special products. Such as jewelry and diamonds, health products, non-branded fashion, other stand-alone products.

Best,
Igor
Igor Nusinovich, Co-Founder & CEO

Valigara Online Jewelry Manager
Multi-channel eCommerce for Jewelry and Diamonds
Max Meadows, VA United States
Jax Music Supply
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Re: When Common Sense Beats Repricing Software
5 Dec 2017
I set my prices in a range and keep my minimum profit reasonable. Since I have some 2500 products, I do not try to go in and manage each one. Like in an auction, my goal is to win at a minimum level that works for me and does not go too high to avoid sticker shock of potential eyeballs. I find that competitors do massage their prices just below mine. When they sell out, my prices rise to the demand automatically. On average I’m in the buy box 30% across all products (not including exclusives). Trying to manage individual products is a huge time suck that likely will yield little.
Nottingham United Kingdom
Bigian13
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Re: When Common Sense Beats Repricing Software
6 Dec 2017
@RepricerExpress

Not wanting to be picky with your linked guide to the 999 trick, but it does not always work with FBM sellers.

With FBA Amazon will list, on your behalf, the full quantity that you have available. With FBM and the use of multi channel listing software, sellers can set a maximum number or a stock latency that they want to list on each channel. Therefore not giving the true picture.

I know several sellers that, when they are having a sale, will set the maximum listed quantity to a low number such as 2 even though they may have hundreds available as it instills a sense of urgency in the buyer to get it at the low price before stock runs out.

In fact I know one seller who once bought 'the last six' from their competitor in order to get them off the listing and then hope to get a better price, only to find an hour later that the competitor had another 6 available !!
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repricerexpress
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Re: When Common Sense Beats Repricing Software
Yesterday at 3:47pm
Hi Bigian13

Yeah, totally agree.

The 999 trick will only work on FBA sellers.
Win the Buy Box more often with RepricerExpress Amazon Repricing Software.

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